That is the question a talker possed in some forum a while back. Dilemma was a property or a car. And answers were various. Some people said it depends on the person or circumstances. If you are buying a car for professional use, that’s one thing. But a car for personal use, this shouldn’t even be a question, especially if you have to ask. It’s a test of financial literacy. The times I’ve struggled in life, it’s because of purchasing liabilities. A car will never appreciate in value.
Robert Kiyosaki, a billionaire, says that many people use debt to buy liabilities, while he uses debt to purchase assets. He also says that he is $1.2B in debt because “If I go bust, the bank goes bust. Not my problem”.
When you think about it, Kenyan Industrialist Manu Chandaria went bust some 6-7 years back. Do you remember his home in Muthaiga being repossessed? The Banks beat him in court and won his companies. Then in a strange twist, gave him back keys to his companies, because he’s the only one who can run them. They went in there and wakajionea. Yaani they forgave him a debt of ksh 6B.
Of course he had a hoodwinked them, but that’s a story for another day.
This is the post btw:
Manu Chandaria ndio huyo